2.2 Total Revenue

Instructions

1. Read Chapter 2 of the textbook.
2. Please (show) your calculation for each percentage for 2008.Also, provide a comprehensive statement for your results.
3. Review the following paragraph:

Between 2008 and 2009, the quantity of lobsters caught in Maine increased by 8 percent. But the total value of the catch fell by $23 million, about 10 percent. (The "value" is, of course, total revenue to lobstermen.) The figures in the example imply prices for lobsters of $3.50 in 2008 and $2.93 in 2009. So total revenue in 2008 must have been $245 million. The table below (from the Excel workbook for this chapter) summarizes the results.

Source: Lima, T. (2020). Chapter 4: Demand and supply applications. In K. E. Case, R. C. Fair, & S. E. Oster,Principles of microeconomics, instructor's resource manual with solutions (Download only) (13th ed., p. 49). Pearson.

1. Calculate the total revenue for 2008 and 2009.

• Tip: TR = P*Q-Show your calculation for each (percentage) category for 2008.

1. Explain why the revenue did not increase. Please elaborate in detail.